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Unemployment insurance claims hit the lowest level in 50 years, pushing the US dollar higher

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USD - United States Dollar

The US dollar index is increasing 0.18 percent this morning after a very quiet session in Asia and Europe. The reason for the increase was the unemployment insurance claims in the week ending on April 6th, which came in at 196,000, a decrease of 8,000 from the previous week's revised level. This was the lowest level for initial claims since October 4, 1969 when it was 193,000. Additionally, the producer price index for final demand rose 0.6 percent in March, when the expected number was 0.3 percent.

According the Federal Reserve Bank of Chicago Economic Adviser Bill Strauss, there is little chance a recession will cut short the near-record US expansion. He added that there's little sign of overheating in any sector that would put growth at risk, and low-interest rates should continue to boost investment in manufacturing and home building this year. This was part of an interview with MNI.

Key Movers

The European Union has allowed the UK more time to find a way of leaving the bloc. The new deadline is October 31st, however, the GBP/USD has not had a positive reaction because uncertainty continues over what Brexit will look like. This situation might also put pressure on Prime Minister Theresa May, because members of her party will see the risk of no Brexit. Technically speaking the GBP/USD is trading in narrower ranges every day, meaning that it will take a direction sooner than later. Key levels to see today are 1.3028 as support and 1.3120 as resistance.

The dovish ECB has left the EUR/USD pair unchanged. Draghi confirmed they are not only looking at TLTROs (Targeted longer-term refinancing operations), but they are also looking at mitigating negative rates if needed. As you know, the TLTROs provide long-term loans to banks and offer them an incentive to increase their lending to businesses and consumers in the Euro Zone. Technically speaking, for today, the EUR/USD has a support level at 1.1241 and a resistance level at 1.1288.

Expected Ranges

USD/CAD: 1.3322 - 1.3408 ▲

EUR/USD: 1.1241- 1.1288 ▼

GBP/USD: 1.3028 - 1.3120 ▼

AUD/USD: 0.7130 - 0.7167 ▼

NZD/USD: 0.6710 - 0.6752 ▼